When shopping for auto insurance, many individuals usually opt for liability or medical coverage only. As a result, most don’t pay much attention to other coverage policies, such as accident forgiveness, which can be a huge mistake. This is one of the most crucial coverage options for which automobile owners should shop, even if they are safe drivers. Read on for more on auto insurance with accident forgiveness- how it works and why you might need it.
Find Cheap Auto InsuranceAuto Insurance With Accident Forgiveness Explained
Did you know that according to a study, the increase in the average rate of automobile insurance nationally for an at-fault collision with property damage is nearly 47 percent? This goes higher if the crash results in injuries. However, getting accident forgiveness coverage is the best way to avoid increasing your insurance premium after a crash.
Auto insurance with accident forgiveness is even recommended for safe drivers with clear driving history. After all, shooting up your insurance rate takes only one hit on the road. In other words, if you are in a crash and found at fault, this can increase your insurance rate for at least three or more years, depending on the insurer and the state.
Now, if you’re wondering what exactly accident forgiveness is, then let us explain:
It can best be described as the extra coverage purchased to prevent the insurance cost from rising after a collision. This coverage ensures that your first chargeable and at-fault crash doesn’t affect the insurance premium. The first chargeable accident is the one where you are at fault. This can be a simple fender bender accident or a severe crash resulting in death and injuries to the victim.
So, if you’re at fault, accident forgiveness coverage can prevent you from paying increased rates, which can otherwise prove very costly.
How Does It Work?
Your driving history should be clean to qualify for auto insurance with accident forgiveness. This means you shouldn't have chargeable at-fault accidents, speeding tickets, or DUIs. If you do, then you can get accident forgiveness coverage.
In terms of how it works, let's suppose you earn discounts for safe driving and clean history from the insurer each year. Unfortunately, you're found in a chargeable crash, but you have auto insurance with accident forgiveness.
This is where the forgiveness coverage will help. Though you will lose a claims-free discount that you have earned on safe driving, your insurance premiums will not increase.
However, it is vital to note that this is not an unlimited pass. So, you have to be vigilant on the road next time and practice safe driving.
Things You Must Know About Accident Forgiveness
When it comes to shopping for accident forgiveness coverage, here are some things you must know:
Not All Insurers Offer Accident Forgiveness
If you want to avail this option, you must do some legwork. You must research and find out about the insurance companies that offer this coverage option and their qualification requirements. Moreover, states like California don't offer it at all. So, you can't apply for accident forgiveness if you reside in California.
One Accident Forgiveness Per Policy
This is definitely a rule that you should know before you move forward with your decision to purchase accident forgiveness coverage on a policy with multiple drivers. We say this because many people believe that accident forgiveness is for all drivers covered in one policy. In fact, you get forgiveness for one at-fault collision per policy- even if there are multiple drivers on that policy.
Applicable Only For First At-Fault Crash
This coverage only protects you if it is your first at-fault collision. Hence, if you have the coverage but have already utilized it for the first accident, it won't apply to subsequent accidents.
Accidents Stay On The Driving Record
Even if the insurer forgave the collision because of the accident forgiveness coverage, it will still show up on your driving record. This means accident forgiveness protects you from high insurance premiums for a specific time. If you plan to switch insurers, you might have to pay a high insurance rate as a forgiven accident will appear on your driver's record.
Find Cheap Auto InsuranceDo I Need Accident Forgiveness? Understanding the Benefits
Accident forgiveness insurance is an optional add-on that can benefit drivers who want to avoid a premium increase after their first at-fault accident.
This coverage can be beneficial if you have a good driving record and want to protect it from the financial impact of an unexpected mistake. It is ideal for drivers who want peace of mind and prefer to maintain stable insurance costs.
However, it is essential to weigh the cost of adding this feature against the potential savings. Accident forgiveness can provide valuable financial protection if your premiums are likely to increase significantly after an accident.
On the other hand, if your insurer already offers competitive rates or you have other mitigating factors, it might not be necessary. Ultimately, the decision depends on your driving history, risk tolerance, and financial situation.
If you don't qualify for accident forgiveness, you can still reduce your car insurance premiums through various discounts. For instance, drivers with excellent safety records can receive Safe Driver discounts. Similarly, drivers who opt for bundled auto and home insurance policies can reduce their premiums. Good student discounts benefit young drivers with high grades, and defensive driving courses can also lead to lower rates.
Bottom Line
In a nutshell, auto insurance with accident forgiveness coverage is a great way to keep your insurance premiums on the lower end. It's a prudent step. However, remember that it is only for your first at-fault crash. Therefore, following the other steps discussed in this post is best to keep your premiums low. For more information on auto insurance or rate comparison, visit Bind Right.